Ericsson goes on falling
November 22, 2007
Ericsson, the Swedish telco supplier, lost another 11 per cent market value on Tuesday after it told an investors fourth-quarter earnings would come in at the lower end of expectations. It issued a shock profit warning last month.
That warning wiped out a quarter of the Swedish company's market capitalisation â€“ about $15 billion (E10.1) â€“ in one day after it said third-quarter profitability was far lower than expected. Carl Henric Svanberg, chief executive, told investors: “In the short term there are slightly more worrying signs than encouraging signs.” These included “further issues” in the networks markets that had triggered the original downgrade, “political uncertainty in certain emerging markets”, the weakening dollar and a tightening in the European and US markets.